The model's creator, Andrew Wilson, land director at Laing Homes North Home Counties division, explained that, under the model, councils have no nomination rights and cannot influence the developer by threatening to withhold social housing grant.
Wilson added that opposition to the model – which has already provided six key-worker homes on a Laing development in St Albans – would not stop the housebuilder trying to apply it elsewhere.
"For local authorities, there appears to be greater value in getting people out of bed and breakfast and into social housing than providing key-worker housing," Wilson said.
"As the model does not rely upon social housing grant to work, local authorities cannot use the control of the grant money to achieve inappropriate planning conditions."
As the model does not rely on a grant, local authorities cannot use the grant as a bargaining chip
Andrew Wilson, Laing Homes
The model aims to provide key-worker housing for 20 years. A developer sells a proportion of a scheme to a housing association, which gradually pays off the purchasing debt with rent paid by a tenant.
The rent levels are set higher than most social housing, but are affordable for someone with an income of about £20,000. After 20 years, assuming that housing prices have risen 3%, the housing association should be able to sell the property and clear the payment debt.
The model's use in St Albans followed a planning inquiry that held Laing could satisfy the council's planning condition for affordable housing by building homes for key workers.
Linda Middleton, a housing management development officer at St Albans council, said the local authority had opposed the scheme because it was not directed at the greatest priority housing need.
Source
Housing Today
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